The Ministry of Finance, the State Administration of Taxation and the General Administration of Customs released on March 21, 2019 the Announcement of Policies Related to Deepening Value-added Tax Reform, saying the unprecedented reductions of VAT rates will begin from April 1, 2019.
According to the announcement, VAT rate for general taxpayers in some sectors will be lowered to 13% from 16%, and to 9% from 10% for some other sectors. Taxpayers will pay VAT at a rate of 9% for agricultural products they purchased, down from 10% in the past. If taxpayers buy agricultural products for production or processing purposes, their VAT rate will be cut from 13% to 10%.
From April 1, 2019 to December 31, 2021, taxpayers in the production and service industries shall enjoy 10 percent additional input VAT deduction.